Snowman withdraws arbitration against Adani, signs agreement 

July 6, 2020: The cold chain solution provider Snowman Logistics withdrew the arbitration invoked against Adani Logistics regarding the proposed sale of its entire shareholding held by Gateway Distriparks and signed a settlement agreement on July 5.

The stock exchange filing of Snowman read "GDL, ALL and Snowman have mutually resolved their disputes. The parties have signed a settlement agreement on July 5, 2020, and pursuant thereto, the arbitration invoked by GDL against ALL is withdrawn."

In its stock exchange filing on May 22, the cold chain operator noted that Adani Logistics failed to meet the condition for completion of the transaction by March 31, 2020, in terms of the share purchase agreement dated 27 December 2019.

According to the new agreement, the parties agreed that:

1. Adani Logistics has no right to purchase and Gateway Distriparks has no obligation to sell its shareholding in Snowman to Adani

2. Gateway will continue to remain the sole promoter of Snowman and shall be solely responsible for the management and business operations of Snowman.

3. Adani shall not be involved in the day to day management or business operations of Snowman and shall not have a right to nominate or appoint any director on the board (or committee(s)) of
Snowman.

Snowman is expansion mode
Snowman has announced the further capacity expansion and is currently adding to their pallet capacity across the country. Snowman Logistics has commenced construction at the Siliguri facility and is further adding pallet capacity to Taloja and Krishnapattanam facilities taking the total pallet capacity to 1,13,208 with a presence in 16 cities catering to the key markets of Mumbai, Chennai, Bengaluru, and Kolkata.

"Construction in Siliguri prioritized basis customer demand wherein existing set of customers wanted "global standard facilities" in line with other Snowman facilities across the country to reach out to the markets. Snowman will add 4200 pallets at Siliguri and will expand Taloja (Mumbai) and Krishnapattanam facilities by a total of 3000 pallets. All these facilities are scheduled to be up and running before this financial year-end," the Snowman release said.

Snowman caters to various services like dairy products including butter and cheese, canned food items, poultry and meat, seafood, healthcare, and pharmaceutical products.